IRA INFORM REPORT

Report No. :	339304
Report Date :	07.09.2015

IDENTIFICATION DETAILS

Name :	SHARDA EUROPE SP. Z O.O.
Registered Office :	ul. Rzgowska 276A 95-200 Pabianice
Country :	Poland
Financials (as on) :	31.03.2015
Date of Incorporation :	05.11.2004
Legal Form :	Limited liability company
Line of Business :	Wholesale of textiles
No. of Employee :	10  employees

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Poland	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

POLAND - ECONOMIC OVERVIEW

Poland has pursued a policy of economic liberalization since 1990 and Poland's economy was the only one in the EU to avoid a recession through the 2008-09 economic downturn. Although EU membership and access to EU structural funds have provided a major boost to the economy since 2004, GDP per capita remains significantly below the EU average. The unemployment rate is now below the EU average. The government of Prime Minister Donald TUSK steered the Polish economy through the economic downturn by skillfully managing public finances and adopting controversial pension and tax reforms to further shore up public finances. While the Polish economy has performed well over the past five years, growth slowed in 2013 and picked back up in 2014. Short-term, the key policy challenge will be to consolidate debt and spending without stifling economic growth. Over the longer term, Poland's economic performance could improve if the country addresses some of the remaining deficiencies in its road and rail infrastructure, business environment, rigid labor code, commercial court system, government red tape, and burdensome tax system, especially for entrepreneurs. Poland’s long-term challenges include diversifying Poland’s energy mix and sources of supply, as well as stemming the outflow of educated young Poles to other EU Member States, especially in light of a coming demographic contraction as the Solidarity-era baby boom generation ages.

Source : CIA

company name and address

SHARDA EUROPE SP. Z O.O.

ul. Rzgowska 276A 95-200 Pabianice

Phone:    42 6568651

42 6568666

Fax:      42 6568464

E-mail:   poland@shardagroup.net

Website:  www.shardagroup.net

Company summary

Legal form	Limited liability company
Stat.no.	473284146
Tax ID	PL 7292563043

Establishment	05.11.2004
Changes of names and addresses	PHUP SHARDA EUROPE sp. z o.o. ul. Kraszewskiego 22, 91-765 Łódź
	18.02.2005  ul. Górnicza 18/36, 91-765 Łódź
	07.04.2005 SHARDA EUROPE sp. z o.o.
	21.10.2005  ul. Niciarniana 50/52, 92-320 Łódź
	31.01.2008  ul. Rzgowska 276A, 95-200 Pabianice

Registration:

10.01.2005, District Court Łódź, XX Department, KRS 225721

Shareholders	SHARDA SPUNTEX PRIVATE LIMITED, Seth Gajadhar Mansinghka Marg, Bhupalganj, Bhillwara, Rajasthan, India	PLN	1 549 500,00 99,97%
	Amit Kailashchandra Lath , personal ID no. (PESEL) 77090316063, al. Wyszyńskiego 53/60, 94-047 Łódź	PLN	500,00 0,03%
	list entered to NCR /KRS/ on  07.04.2005

Initial Capital		PLN 1 550 000,00
	Initial capital divided into 3100 shares of PLN 500,00 each
	Changes of initial capital
	- since 10.01.2005  until 07.04.2005  the capital estimated	PLN 50 000,00

Management	Anil Kumar Mansinghka   - president Amit Kailashchandra Lath , personal ID no. (PESEL) 77090316063, al. Wyszyńskiego 53/60, 94-047 Łódź  - vice president
	Representation: since 10.01.2005  Each member of the board of directors individually

Main activity	Wholesale of textiles
	Import 2012 India
	Export 2012 (11.00%)
	Branches NACE 2007:
	Wholesale of textiles	(G.46.41.Z)
	Other renting	(N.77.11.Z)
	Other retail	(G.47.91.Z)

Employment

2011:              15        employees 2012:              11        employees 2013:              11        employees 2014:              10        employees 2015:              10        employees

Turnover	01.04.2010 - 31.03.2011	PLN	119 709 152,32
	01.04.2011 - 31.03.2012	PLN	87 559 432,93
	01.04.2012 - 31.03.2013	PLN	67 332 956,51
	01.04.2013 - 31.03.2014	PLN	73 395 586,32
	01.04.2014 - 31.03.2015	PLN	71 973 337,19

Financial statements

Source of financial data	Subject	Subject	Subject	Monitor Polski B
	annual	annual	Preliminary version	annual
Personal balance sheet as at	31.03.2015 (PLN)	31.03.2014 (PLN)	31.03.2013 (PLN)	31.03.2012 (PLN)
-A. Fixed assets......................	5 019 317,71	4 377 602,93	4 096 859,82	656 345,13
-  I.   Intangible assets.............	493,16	1 233,20	1 973,24	2 713,28
-    3. Other intangible assets.......	493,16	1 233,20	1 973,24	2 713,28
-  II.  Tangible assets...............	3 955 934,55	3 431 102,73	2 956 822,58	239 812,85
-    1. Fixed goods...................	3 955 934,55	3 381 102,73	2 936 822,58	239 812,85
-      a) land........................	709 547,00	709 547,00	709 547,00
-      b) buildings, premises, facilities............................	3 098 279,99	2 492 585,75	2 021 091,60
-      c) machinery and equipment.....	12 306,50	6 020,25	2 333,57	3 033,53
-      d) fleet of motor vehicles.....	92 898,94	145 873,42	200 986,01	232 092,12
-      e) other fixed goods...........	42 902,12	27 076,31	2 864,40	4 687,20
-    3. Prepayments for fixed goods under construction....................		50 000,00	20 000,00
-  IV.  Long term investments.........	734 800,00	727 400,00	716 500,00
-    1. Real estate...................	734 800,00	727 400,00	716 500,00
-V. Long-term prepayments and accrued income........................	328 090,00	217 867,00	421 564,00	413 819,00
-  1. Deferred tax assets.............	328 090,00	217 867,00	421 564,00	413 819,00
-B. Current assets....................	24 910 047,59	22 195 102,28	27 260 151,07	44 830 622,07
-  I.   Stock.........................	8 677 841,51	5 482 715,70	8 649 827,62	7 249 488,79
-    3. Finished products.............			5 329 746,74
-    4. Goods for re-sale.............	5 932 576,13	3 978 000,65	3 320 080,88	5 836 205,12
-    5. Advance payments .............	2 745 265,38	1 504 715,05		1 413 283,67
-  II. Short-term receivables.........	6 069 960,56	7 277 374,87	13 177 654,92	14 008 412,53
-    1. Receivables from affiliated companies.............................		236 586,34	2 602 383,88	2 733 960,43
-      a) Due to deliveries and services with payment period:.........		236 586,34	2 602 383,88	2 733 960,43
-        - up to 12 months............		236 586,34	2 602 383,88	2 733 960,43
-    2. Other receivables ............	6 069 960,56	7 040 788,53	10 575 271,04	11 274 452,10
-      a) Due to deliveries and services with payment period:.........	5 941 043,62	6 684 669,80	10 291 000,60	11 262 518,79
-        - up to 12 months............	5 941 043,62	6 684 669,80	10 291 000,60	11 262 518,79
-      b) Due to taxes, subsidies, insurances, duties, etc...............	126 312,00	293 503,00	150 366,00
-      c) Other.......................	2 604,94	62 615,73	133 904,44	11 933,31
-  III. Short term investments........	10 123 545,47	9 394 543,67	5 398 003,47	23 492 947,98
-    1. Short-term financial assets...	10 123 545,47	9 394 543,67	5 398 003,47	23 492 947,98
-      b) Other.......................	1 250 388,00	843 931,72
-        - other short-term financial assets......................	1 250 388,00	843 931,72
-      c) cash and other liquid assets................................	8 873 157,47	8 550 611,95	5 398 003,47	23 492 947,98
-        - cash in hand and on bank account...............................	7 192 816,44	4 076 695,73	5 398 003,47	2 029 538,14
-        - other liquid assets........	1 680 341,03	4 473 916,22		21 463 409,84
-IV. Short-term prepayments and accrued income........................	38 700,05	40 468,04	34 665,06	79 772,77
-D. Total assets......................	29 929 365,30	26 572 705,21	31 357 010,89	45 486 967,20
-A. Shareholders' equity..............	9 880 411,20	12 034 591,97	12 499 350,24	12 469 614,88
-  I.   Basic share capital...........	1 550 000,00	1 550 000,00	1 550 000,00	1 550 000,00
-  IV.  Statutory reserve capital.....	8 719 859,97	8 594 379,10	10 919 614,88	8 708 673,42
-  VII. Profit (loss) carried forward.	-107 323,00		-966 413,32
-  VIII. Net profit (loss)............	-282 125,77	1 890 212,87	996 148,68	2 210 941,46
-B. Liabilities and reserves for liabilities...........................	20 048 954,10	14 538 113,24	18 857 660,65	33 017 352,32
-  I.   Reserves for liabilities......	227 513,00	322 405,94	117 851,00	589 019,00
-    1. Deferred income tax reserves..	227 513,00	322 181,00	117 851,00	589 019,00
-    3. Other reserves................		224,94
-      - short-term...................		224,94
-II.  Long-term liabilities...........	1 063 031,00	1 652 819,00	1 996 504,00
-  2. Other liabilities...............	1 063 031,00	1 652 819,00	1 996 504,00
-    a) Loans.........................	1 063 031,00	1 652 819,00	1 996 504,00
-III. Short-term liabilities..........	18 758 410,10	12 562 888,30	16 743 305,65	32 428 333,32
-  1. Due to affiliated companies.....			257 581,19
-    a) Due to deliveries and services with payment period:.........			257 581,19
-      - up to 12 months..............			257 581,19
-  2. Other liabilities...............	18 758 410,10	12 562 888,30	16 485 724,46	32 428 333,32
-    a) Loans.........................	11 502 886,28	4 203 813,14	6 539 128,65	16 784 018,49
-    d)Due to deliveries and services with payment period:.........	5 594 987,70	6 557 811,65	7 903 146,43	13 306 225,17
-      - up to 12 months..............	5 594 987,70	6 557 811,65	7 903 146,43	13 306 225,17
-    e) Advances received.............	347 435,09	349 987,39	585 895,87	816 337,98
-    g) Due to taxes, subsidies, insurances, duties, etc...............	811 116,45	1 049 274,15	1 457 386,84	1 521 529,48
-    i) Other.........................	501 984,58	402 001,97	166,67	222,20
-D. Total liabilities.................	29 929 365,30	26 572 705,21	31 357 010,89	45 486 967,20
Source of financial data	Subject	Subject	Subject	Monitor Polski B
	annual	annual	Preliminary version	annual
individual PROFIT AND LOSS ACCOUNT	01.04.2014- 31.03.2015 (PLN)	01.04.2013- 31.03.2014 (PLN)	- 01.04.2012- 31.03.2013 (PLN)	01.04.2011- 31.03.2012 (PLN)
-A. Income from sales and similar.....	71 973 337,19	73 395 586,32	67 332 956,51	87 559 432,93
-  I.   Net income on sales...........	190 047,54	121 307,11	21 885,90	35 830,00
-  IV.  Income from sales of goods and materials.........................	71 783 289,65	73 274 279,21	67 311 070,61	87 523 602,93
-B. Operational costs.................	68 072 081,88	72 174 700,97	64 354 483,80	84 537 806,70
-  I.   Depreciation..................	163 633,22	142 999,89	92 169,94	41 300,24
-  II.  Materials and energy..........	167 731,92	190 598,53	152 947,94	99 433,13
-  III. Third party services..........	1 949 965,94	3 958 080,98	1 862 079,71	3 614 998,83
-  IV.  Taxes and duties..............	63 834,57	71 003,30	39 677,91	9 404,63
-  V.   Salaries and wages............	378 403,64	410 535,25	449 419,98	515 633,64
-  VI.  Social security...............	99 618,93	121 665,25	116 243,89	107 266,04
-  VII. Other.........................	239 010,35	184 314,92	166 514,76	228 662,42
-  VIII.Costs of goods and materials sold..................................	65 009 883,31	67 095 502,85	61 475 429,67	79 921 107,77
-C. Profit on sale....................	3 901 255,31	1 220 885,35	2 978 472,71	3 021 626,23
-D. Other operating incomes...........	260 450,20	67 486,65	524 583,75	2 539 041,21
-  I.   Incomes from disposal non-financial assets..................		16,26		4 628,11
-  III. Other operating incomes.......	260 450,20	67 470,39	524 583,75	2 534 413,10
-E. Other operating costs.............	490 091,79	1 242 644,02	181 617,00	544 400,37
-  I.   Loss on disposal of non-finacial assets...................			6 044,14
-  II.  Goodwill revaluation..........	90 606,84	451 580,70	92 617,95	286 651,40
-  III. Other operating costs.........	399 484,95	791 063,32	82 954,91	257 748,97
-F. Profit on operating activities....	3 671 613,72	45 727,98	3 321 439,46	5 016 267,07
-G. Financial incomes.................	1 113 756,98	4 179 429,87	2 773 606,12	579 643,61
-  II.  Interest received.............	130 183,16	509 770,27	693 982,82	411 145,40
-    - including related companies....				4 591,69
-  III. Profit from assets sold.......	298 182,75	1 449 600,95
-  IV.  Financial assets revaluation..	546 897,28	843 931,72
-  V.   Other.........................	138 493,79	1 376 126,93	2 079 623,30	168 498,21
-H. Financial costs...................	5 099 987,47	1 632 249,98	5 252 062,90	3 109 799,22
-  I.   Interest......................	220 452,90	300 930,69	378 624,58	228 895,86
-  III. Financial assets revaluation..	140 441,00
-  IV.  Other.........................	4 739 093,57	1 331 319,29	4 873 438,32	2 880 903,36
-I. Profit on economic activity.......		2 592 907,87	842 982,68	2 486 111,46
-I. Loss on economic activity.........	314 616,77
-K. Gross profit......................		2 592 907,87	842 982,68	2 486 111,46
-K. Gross loss........................	314 616,77
-L. Corporation tax...................	-32 491,00	702 695,00	-153 166,00	275 170,00
-N. Net profit........................		1 890 212,87	996 148,68	2 210 941,46
-N. Net loss..........................	282 125,77

AUDITOR

Balance sheet as at 31.03.2012
BIEGLI REWIDENCI WILK, GRECKI, STOPCZYŃSKA I PARTNERZY, ul. Zamkowa 23, 95-200 Pabianice	No. 3354

Expert auditor Bogdan Grecki

No. 9786

Ratios	01.04.2014- 31.03.2015	01.04.2013- 31.03.2014	01.04.2012- 31.03.2013	01.04.2011- 31.03.2012
Current ratio	1,33	1,77	1,63	1,38
Quick ratio	0,86	1,33	1,11	1,16
Immediate ratio	0,47	0,68	0,32	0,72
Return on sale	-0,39	2,58	1,48	2,53
Return on assets	-0,94	7,11	3,18	4,86
Return on equity	-2,86	15,71	7,97	17,73
Average trade debtors' days	30,78	36,19	71,43	58,56
Average stock turnover's days	44,01	27,27	46,89	30,30
average payables payment period	95,13	62,48	90,76	135,55
Total indebtedness ratio	66,99	54,71	60,14	72,59

While rating the company, it is advisable to take into consideration information about the branch, the company is acting in
(G.46.41.Z - NACE 2007), as at :	31.12.2012	31.12.2011	31.12.2010	31.12.2009	31.12.2008
Current ratio............................	2,51	2,12	2,05	2,02	2,39
Quick ratio..............................	1,08	0,84	0,88	1,41	1,82
Immediate ratio..........................	0,10	0,08	0,09	0,09	0,17
Return on sale...........................	4,59	2,30	5,07	4,61	5,32
Return on assets.........................	7,31	3,50	8,07	6,64	7,25
Return on equity.........................	12,73	6,25	15,89	9,35	10,28
Average trade debtors' days..............	63,99	62,20	63,97	78,96	112,90
Average stock turnover's days............	100,14	106,68	98,46	36,45	37,54
average payables payment period..........	70,74	84,92	84,68	62,12	69,94
Total indebtedness ratio.................	42,58	43,93	49,23	28,99	29,51
Percent share in the examinated group of companies with net profit.............	71,40	70,60	66,70	66,70	72,20
Sales/revenue per employee in th. PLN....	318,37	458,95	358,27	816,10	918,30
Average sales/revenue per company in th. PLN..................................	50 734,00	66 764,12	46 634,50	114 915,24	121 623,61
according to the Central Statistical Office

Locations:

seat: ul. Rzgowska 276A, 95-200 Pabianice Phone:                   42 6568651                          42 6568666 Fax:                     42 6568464 E-mail:                  poland@shardagroup.net Website:                 www.shardagroup.net

Real Estate	Book value of buildings as at 31.03.2015	PLN	3 098 279,99
	Book value of lands as at 31.03.2015	PLN	709 547,00
	Verification of information on real estate ownership position through the Real Estate Register is not covered by the standard report.

Means of transport

As at 31.03.2015  book value of car fleet was: PLN 92 898,94

Shares in other companies

As at 12.08.2015 there are no shares in other companies.

Connections:	Anil Kumar Mansinghka  Connections have not been determined due to no possibility of identification of the persons or subjects which appear in the company.
	Data concerning connections are valid as at: 12.08.2015.

General information

SHARDA EUROPE is a part of Sharda Group - a worlwide textile company, which mother company is seated in Bilhwara, India. The group has been operating since 1926. Sharda Group has obtained approx. 40 production plants in India and other in Egypt and Indonesia. The group has obtained warehouses in India, Poland (Łódź, Warszawa, Gdynia, Jarosław), Germany and Ukraine. The subject has obtained also agencies in: Lithuania, Ukraine and Spain.

Banks

Bank Zachodni WBK SA ul. Rynek 9/11, 50-950 Wrocław  Bank Millennium SA Millennium - Centrum Rozliczeniowe  (11602202) ul. Wały Jagiellońskie 10/16, 80-887 Gdańsk Acc.no. 83116022020000000073779838  (EUR)  Bank BPH SA Centrum Rozliczeniowe  (10600076) al. Pokoju 1, 31-548 Kraków

Payment Manner	In available sources, payment delays have not been noted
Credit capability	Business connections appear permissible Maximum credit PLN  1 400 000,00
	We would like to draw your attention to: - Net loss

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.40
UK Pound	1	Rs.101.19
Euro	1	Rs.73.89

INFORMATION DETAILS

Analysis Done by :	KAS
Report Prepared by :	SDA

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.